More Investments

More Startups

More Success

The MetroStart Plan

Startup investing in our region typically is performed with a “herd mentality.” One wealthy person decides to invest, performs the due diligence, structures the deal, and brings their friends along.

Minimum investments often are $25,000 to $50,000. Many angel investors have invested in one or a handful of deals, and they lost all or most of their money.

Statistically, this is a poor way to invest. Multiple angel investor studies have shown that investing in multiple startups produces more success. In fact, the average angel investor who invests in 12 companies over a 5-year period produces a 22% to 27% annual return on their investments (triple the typical stock market returns).

Changes in SEC laws now allow startups to raise capital publicly, spreading risk to a higher number of investors. Modern investment instruments (convertible notes that follow the founder) make early deal structuring much easier and safer for all involved. By accelerating the use of these tools, our region can significantly increase the number of successful startups and greatly improve investor returns.